Thursday, August 4, 2011

NewsDaily: BofA reports worst ever loss, margins shrink

NewsDaily: BofA reports worst ever loss, margins shrink: "Some of Bank of America's businesses, like credit cards, experienced rising profits and loan growth during the quarter.

'It's a tale of two cities,' said Jason Ware, equity analyst at Albion Financial Group. 'You have one that looks like it's starting to make money, and then you have this mortgage business that is still throwing off pretty large losses.'

He and other analysts also said Bank of America is not likely to raise its skinny penny-a-share dividend until at least 2012.

One negative sign for the bank is that its loan book shrank, even as many rivals experienced loan growth. Also pressing profits is lending margins, which are shrinking as the longer-term rates at which banks can lend are falling relative to the short-term rates at which banks borrow.

At Bank of America, these factors translated to a 13 percent decline"

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